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Public Preferences for Carbon Tax Attributes

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  • Z. Eylem Gevrek

    () (Department of Economics, University of Konstanz, Germany)

  • Ayse Uyduranoglu

    () (Istanbul Bilgi University, Turkey)

Abstract

The impacts of climate change are already visible throughout the world. Recognizing the threats posed by climate change, the Durban Platform, the 17th Session of the Conference of Parties (COP 17), underscores that the global nature of climate change calls for the widest possible cooperation and ambitious action by all countries. A crucial starting point for the design of effective and publicly acceptable policies is to explore public preferences for climate policy instruments. Using a choice experiment, this study investigates public preferences for carbon tax attributes in a developing country context. The results account for heterogeneity in preferences and show that Turkish people prefer a carbon tax with a progressive cost distribution rather than one with a regressive cost distribution. The private cost has a negative effect on the probability of choosing the tax. Earmarking carbon tax revenues increases the public acceptability of the tax. Moreover, there is a preference for a carbon tax that promotes public awareness of climate change.

Suggested Citation

  • Z. Eylem Gevrek & Ayse Uyduranoglu, 2015. "Public Preferences for Carbon Tax Attributes," Working Paper Series of the Department of Economics, University of Konstanz 2015-15, Department of Economics, University of Konstanz.
    • Handle: RePEc:knz:dpteco:1515
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    File URL: http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_15_Gevrek_2015.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stefano Carattini & Andrea Baranzini & Philippe Thalmann & Frédéric Varone & Frank Vöhringer, 2017. "Green Taxes in a Post-Paris World: Are Millions of Nays Inevitable?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 97-128, September.
    2. Freyre, Alisa & Klinke, Sandra & Patel, Martin K., 2020. "Carbon tax and energy programs for buildings: Rivals or allies?," Energy Policy, Elsevier, vol. 139(C).
    3. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    4. Farrell, Niall, 2017. "What Factors Drive Inequalities in Carbon Tax Incidence? Decomposing Socioeconomic Inequalities in Carbon Tax Incidence in Ireland," Ecological Economics, Elsevier, vol. 142(C), pages 31-45.
    5. Simixhiu, Amantia & Ziegler, Andreas, 2018. "On the relevance of income and behavioral factors for absolute and relative donations: A framed field experiment," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181600, Verein für Socialpolitik / German Economic Association.
    6. Douenne, Thomas & Fabre, Adrien, 2020. "French attitudes on climate change, carbon taxation and other climate policies," Ecological Economics, Elsevier, vol. 169(C).
    7. Dorband, Ira Irina & Jakob, Michael & Kalkuhl, Matthias & Steckel, Jan Christoph, 2019. "Poverty and distributional effects of carbon pricing in low- and middle-income countries – A global comparative analysis," World Development, Elsevier, vol. 115(C), pages 246-257.
    8. Thomas Douenne & Adrien Fabre, 2019. "Can We Reconcile French People with the Carbon Tax? Disentangling Beliefs from Preferences," Working Papers 2019.10, FAERE - French Association of Environmental and Resource Economists.
    9. Chen, Zi-yue & Nie, Pu-yan, 2016. "Effects of carbon tax on social welfare: A case study of China," Applied Energy, Elsevier, vol. 183(C), pages 1607-1615.
    10. Ziegler, Andreas, 2019. "The Relevance of Attitudinal Factors for the Acceptance of Energy Policy Measures: A Micro-econometric Analysis," Ecological Economics, Elsevier, vol. 157(C), pages 129-140.
    11. Laurent Ott & Mehdi Farsi & Sylvain Weber, 2020. "Beyond political divides: Analyzing public opinion on carbon taxation in Switzerland," IRENE Working Papers 20-11, IRENE Institute of Economic Research.
    12. Andreas Ziegler, 2017. "Economic calculus or personal and social values? A micro-econometric analysis of the acceptance of climate and energy policy measures," MAGKS Papers on Economics 201716, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Groh, Elke D. & Ziegler, Andreas, 2018. "On self-interested preferences for burden sharing rules: An econometric analysis for the costs of energy policy measures," Energy Economics, Elsevier, vol. 74(C), pages 417-426.
    14. Stefano Carattini & Maria Carvalho & Sam Fankhauser, 2018. "Overcoming public resistance to carbon taxes," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 9(5), September.
    15. Umit, Resul & Schaffer, Lena Maria, 2020. "Attitudes towards carbon taxes across Europe: The role of perceived uncertainty and self-interest," Energy Policy, Elsevier, vol. 140(C).
    16. Wang, Linyuan & Zhao, Lin & Mao, Guozhu & Zuo, Jian & Du, Huibin, 2017. "Way to accomplish low carbon development transformation: A bibliometric analysis during 1995–2014," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 57-69.

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    Keywords

    Carbon taxes; Choice experiment; Latent class model; Mixed logit model; Preferences; Turkey;

    JEL classification:

    • H - Public Economics
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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